SAN FRANCISCO-Earlier today, GlobeSt.com reported that steadily increasing retail sales have translated to demand growth and increasing confidence among retailers in the local market, who are focusing their expansions in the periphery of the CBD as well as in surrounding residential areas. So says Jones Lang LaSalle‘s retail group.
According to Craig Killman, SVP of JLL, given the increasing levels of Venture Capital investment in the high tech community from San Francisco to Silicon Valley, “consumer confidence in those markets is on the rise, tenant performance is following suit and vacancy factors are virtually nonexistent in ‘A’ properties.”
Killman points out that “The Bay Area’s retail market is very healthy and while there are many barriers to entry, there are several mixed-use projects planned in infill locations in primary trade areas which will relieve some of the pressure for retailers demanding space in this dynamic market.”
According to the firm’s outlook for tenants, retailers are focusing their expansions on the periphery of the CBD as well as in surrounding residential areas. In addition, the firm points out the there will be a booming rent recovery—a product of low vacancy rates and lower construction. “Rent growth should be highest from 2013-2015, then start to decelerate as more space is delivered.”